Feb 13, 2017: Tariffs for solar power in India have fallen to a record low, which is below Rs 3 per kilo-watt hour, giving a boost to the green energy drive in the country.
Solar energy producers quoted prices, at which they will sell solar power, to win contracts to develop the world’s largest solar power plant of 750 MW in Rewa, Madhya Pradesh.
India’s demand for solar energy is likely to grow by seven times by 2035, which means the share of renewable energy in the country will increase from 2% to 8% in 2035
Mahindra Renewables Pvt. Ltd, Acme Solar Holdings Pvt. Ltd and Sweden’s Solenergi Power Pvt. Ltd bid Rs 2.98 per kWh, Rs 2.97 per kWh and Rs2.974 per kWh, respectively, to win contracts to build 250MW plants.
Piyush Goyal, India’s minister for coal, power, mines and new and renewable energy, said that the solar tariff bid of Rs 2.97 per unit was a record low.
Under the contracts, there will be 5 paise per annum escalation in tariff for 15 years. A levelized tariff of about Rs 3.30 per unit will be levied.
The reverse auction for 750 MW of solar capacity at Rewa saw initial participation by 20 bidders, including Green Infra Wind Power Project Ltd, SBG Cleantech Ltd and Enel Green Power SpA. Overseas investors include State General Reserve Fund of Oman, UK Green Investment Bank Plc, Investment Corp. of Dubai, Norway’s Statoil ASA, France’s Total SA and Royal Dutch Shell Plc.
According to the government, India had 9,012.69 MW of installed solar power capacity as of 31 December 2016. India’s demand for renewable energy is expected to grow seven times by 2035, according to the latest edition of BP Energy Outlook. This means the share of renewable energy in the country’s fuel mix will increase from 2% to 8% by 2035.